will the Turkish lira decline further ?

I have converted 63000 Euro to Tr. lira and placed it on deposit in Turkey. I converted at 2.97 AND NOW THE EXCHANGE IS 3.35 TO THE EURO. i HAVE LOST 7000 EURO. SHOULD I GET OUT OF LIRA NOW, SUFFER THE LOSS, or ride the storm and hope that lira will improve ?

Hi Tom,

Thanks for contacting us.

The TRY has been hit extremely hard by various factors in recent months. Emerging Market currencies as a bloc have suffered from the deterioration in economic statistics coming out of China and this week’s global stocks shock has added to the TRY’s woes.

Political instability in the nations surrounding Turkey is unlikely to subside for years and when the US Federal Reserve cuts its headline interest rate during the next few months, the Lira will lose further ground.

The Turkish Lira is therefore one of the currencies I would least like to be holding at the minute.

Regards,

John Cameron
currencynews.co.uk
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